United States Great Depression (Unemployment)

Roosevelts 100 days was very successful.FDR and Congress went to work providing for direct relief, recovery and reform. From March of 1933 to June of 1933, Roosevelt sent 15 proposals to Congress and all

15 were adopted

Congress and President tried anything reasonable to overcome the Great Depression.
100 days

Govt. programs which provided direct relief to suffering Americans through govt. spending
Renew democracy Restore confidence in the banking Stimulate economy Social Engineers Put people back to work.
Brain Trust

NEW DEAL CARTOON

Relief:

ease suffering of the needy Recovery: begin economic growth Reform: help prevent future economic crises

How? FDRs 3 Rs

Part of FDRs New DealAgencies created by the US Govt. to bring about the 3 RsRelief, Recovery, and Reform.

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RELIEF:

Ease Suffering of the Needy

WPA / 1933 to 1943

Works Progress Administration Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

wpa

Works Progress Administration (WPA), the New Deals main relief agency. People employed by the WPA at its peak was more than 3 million 2,500 hospitals 5,900 schools

13,000 playgrounds
125,000 public buildings

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RELIEF:

Ease Suffering of the Needy

Sent 3 million young men to work camps to build bridges, replant forests and other conservation tasks. Develop job skills and improve environment. Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families.

Civilian Conservation Corps

CCC / 1933 to 1942

Created in April 1933.

Within 4 months, 1300 CCC

camps were in operation.

300,000 men in 1933 between ages 18 and 25 Signed up for 6 months and

made $30.00 a month.

1933 and 1941 over 3,000,000 men served in the CCC . Goal: Keep teenage young men off the street and away from the job market. Develop job skills and improve

environment

Planted trees, built public parks, drained swamps to fight malaria, restocked rivers with fish, worked on flood control projects and a range of other work that helped to conserve the environment.

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RELIEF:

Ease Suffering of the Needy

HOLC / 1933
Home Owners Loan Corporation Prevented mortgage foreclosures. US Govt. bought up mortgages and refinanced them so that homeowners could pay their mortgages.

RECOVERY: Begin Economic Growth

National Industrial Recovery Act Called the National Recovery Act..

NIRA / 1933

Created NRA to enforce codes of fair competition and minimum wages.

Created NRA to enforce codes of fair competition, minimum wages, and to permit collective bargaining of workers.
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Helped businesses organize codes setting prices and minimum wage.

Put people back to work at decent jobs, wages and working conditions.
Businesses were not forced to join this. Declared unconstitutional by the Supreme Court in 1935 because it violated laissez faire.

RECOVERY: Begin Economic Growth Agricultural Adjustment Act

Protected farmers from price drops and over production.. US Govt. Paid farmers (subsidies) not to grow crops, produce dairy products such as milk and butter or raise pigs and lambs. Prevent another Dust Bowl, teach farmers methods of preventing soil erosion.
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AAA / 1933

RECOVERY: Begin Economic Growth Agricultural Adjustment Act

Protected farmers from price drops by providing crop subsidies to reduce production, educational programs to teach methods of preventing soil erosion.
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AAA / 1933

RECOVERY: Begin Economic Growth

Tennessee Valley Authority

Federal government built a series of dams to prevent flooding and sold electricity. First public competition with private power industries. Federal government built a series of dams to prevent flooding and sell electricity in the South.
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TVA / 1933

TVA

Develop a poor section of the Southeast U.S. Stimulate the economy and produce cheap electricity. Control floods, planting new forests.

Bring this section into the 20th century. 94 percent of property owners and 98 percent of tenants did not have electricity. 30 percent of property owners and 41 percent of tenants had no toilet facilities whatsoever

65 percent of property owners and 78 percent of tenants had to travel at least 300 yards to get their household water.
8 percent of property owners and 3 percent of tenants owned radios (usually battery operated). 39 percent of property owners and 23 percent of tenants had phonographs (including record players that were operated with a hand crank).
TVA

50 percent of property owners and 25 percent of tenants read newspapers. 26 percent of property owners and 16 percent of tenants owned automobiles. 7 percent of property owners and 4 percent of tenants owned trucks.
TVA

TVA MAP

TVA CRITICISM

REFORM:

Prevent Another Depression

Federal Deposit Insurance Corporation

Created federally insured bank deposits ($2500 per investor at first) to prevent bank failures. Glass-Steagall Act created federally insured bank deposits ($2500 per investor at first) to prevent bank failures.
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FDIC / 1933

REFORM:

Securities and Exchange Commission

SEC / 1934

Prevent Another Depression

Regulated stock market and restricted margin buying, and frauds.

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REFORM:

Prevent Another Depression

National Labor Relations Act

Wagner Act / 1935

Reaffirmed labor's right to unionize, prohibited unfair labor practices, and created the National Labor Relations Board.
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One of the most important features of the New Deal. Established a retirement for persons over 65 funded by a tax on wages paid equally by employee and employer. Old age insurance Protect Americans who were unable to support themselves. Unemployment compensation Compensation to disabled workers and assistance to widows and children

25% to 40% of workers out of work

Was able to lower it to 14%

Criticisms of New Deal

US government and President too powerful Violated laissez faire Supreme Court declared NIRA and AAA unconstitutional Critics: Father Charles Coughlin Dr. Francis Townsend Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt. Welfare state----Created a population of Americans who relied on the US Govt. to live
100 days

A Roman Catholic priest. Radio Priest in Detroit Michigan.

Criticized FDR in weekly radio program.

10 million listeners.

Criticized FDRs farm program

Believed an international conspiracy of bankers existed and FDR was influenced by them. He called for the nationalization of banks and utilities. (US Govt. controls banks, Socialism) Fascist; Anti-Semitic overtones.

He wanted the government to help older citizens.

Retired California Physician.

Suggested a $200 per month pension for people over 60. (This is socialism) Open jobs for the younger unemployed.

Spending all $200 would also be required to boost economic demand.

Townsend Clubs created all over the nation. Influenced FDRs creation of Social Security

Successes of New Deal

Stimulated the economy Put people back to work. Improved morale and self-confidence of the people US Governments role changes and became directly involved in helping people

100 days

LEFT
No Govt Socialism Democrat Green Party Communism

CENTER
Independent Reform

RIGHT
Republican KKK Dictator

Anarchy

Radical

Liberal

Moderate

Conservative

Reactionary

Fascist

The New Deal walked a tightrope between the extreme positions of the left and right.

Critics would claim it was unconstitutional, socialism,

anti-laissez faire and went too far to the left.

Others would claim the New Deal didnt go far enough

to the left

Supreme Court was striking

down New Deal legislation.

Roosevelt proposed a bill to allow the president to name a new federal judge for each who did not retire by age 70 and 1/2. 6 justices over age limit. Would have increased the number of justices from 9 to 15, giving FDR a majority of his own appointees on the court. The court-packing bill was

not passed by Congress.